Monday, August 10, 2009

Prepare Audit-Ready Tax Returns

Last week a new article I penned for WomenEntrepreneur.com titled “Prepare Audit-Ready Tax Returns: Getting audited is unlikely, and you can reduce the chances further by steering clear of IRS 'red flags' was published in their Money and Finance section. In the column I explain the three different types of audits the IRS conduct, and how you can prepare returns that will stand up to an audit. Check out the introduction of the article below, or read the full version here.

"Audit."

It just might be the most terrifying word in the English language. It can strike fear in the heart of even the most diligent taxpayer. But listen up, ladies. Audits are not the life-shattering events everyone thinks they are. The more you know about the audit process, the less you have to fear.

An audit is simply the process of the IRS closely reviewing your tax return and backup documentation as part of the agency's compliance checking. Think of it as a government quality-control tool, much like the quality-assurance checking you do in your own business.